Transforming Supply Chains into Sustainability Circles International Conference on Business and Sustainability: Designing Sustainability Portland, Oregon USA October 15-17, 2008 www.bizandsustainability.org (public version)

1. Designing Sustainability:
Transforming Supply Chains Into
Sustainability Circles™
John A. Thornton
International Conference on Business and Sustainability:
Designing Sustainability
Portland, Oregon USA
October 15-17, 2008
www.bizandsustainability.org
John Thornton ©

2. Designing Sustainability
Designing Sustainability Designing Sustainability:
Supply Chain
Transformatio
Proximity and Eco-Efficiency
n to
Product Process People New / Resource
Sustainability
Paradigms Productivity
Systems
Old Way:
Product Supply Chain Starts w/ Lean
Design Community Centralized
Development (Linear) (Manufacturing)
& Distant
New Way:
Process Sustainability
Use Culture Distributed Sustainability
Development Chain
& Local
Sustainability
Re-Use Materials Lean
Circle
(End-of-Life) Selection Sustainability
(Cyclical)
Sourcing
Status Quo:
Destroy &
Recycle
Porteon: Re-use
Lifecycle Analysis / Carbon Footprinting Carbon Footprinting

3. Designing Sustainability
Designing Sustainability Designing Sustainability:
Supply Chain
Transformatio
Proximity and Eco-Efficiency
n to
Product Process People New / Resource
Sustainability
Paradigms Productivity
Systems
Starts w/
Old Way: Starts w/ Lean
Product Supply Chain Lean
Design Community Centralized (Manufacturing)
Development (Linear) (Manufacturin
& Distant
g)
New Way:
Process Sustainability
Use Culture Distributed Sustainability
Development Chain
& Local
Sustainability
Re-Use Materials Lean
Circle
(End-of-Life) Selection Sustainability
(Cyclical)
Sourcing
Status Quo:
Destroy &
Recycle
Porteon: Re-use
Lifecycle Analysis / Carbon Footprinting Carbon Footprinting

4. Designing Sustainability
Designing Sustainability
Designing Sustainability:
Supply Chain
Eco-Efficiency
Product Process People / Resource
Productivity
Transformation to
Proximity and New
Sustainability
Paradigms Starts w/
Product Systems Starts w/ Lean
Lean
Design Community (Manufacturing)
Development (Manufacturin
g)
Process Old Way:
Use Culture Supply Chain Centralized Sustainability
Development (Linear) & Distant
Re-Use Materials Lean
(End-of-Life) Selection Sustainability
New Way:
Sustainability Chain Distributed
Sourcing & Local
Status Quo:
Destroy &
Recycle
Porteon: Re-use
Sustainability Circle
(Cyclical)
Lifecycle Analysis / Carbon Footprinting Carbon Footprinting

5. Designing Sustainability
Designing Sustainability
Designing Sustainability:
Supply Chain
Eco-Efficiency
Product Process People / Resource
Productivity
Transformation to
Proximity and New
Sustainability
Paradigms Starts w/
Product Systems
Lean
Starts w/ Lean
Design Community
Development (Manufacturin
(Manufacturing)
g)
Process Old Way:
Use Culture Supply Chain Centralized Sustainability
Development (Linear) & Distant
Re-Use Materials Lean
(End-of-Life) Selection Sustainability
New Way:
Sustainability Chain Distributed
Sourcing & Local
Status Quo:
Destroy &
Recycle
Porteon: Re-use
Sustainability Circle
(Cyclical)
Lifecycle Analysis / Carbon Footprinting Carbon Footprinting

6. Solutions: Integrated Design Approach
Design for
Proximity:
a whole systems approach, New Urbanism,
Smart Growth Capital
linking: Business
Structure:
Model:
Social and
zero emission mobility, Own, Lease,
Environmental
CarShare,
zero carbon buildings & communities, Usage Investors
zero carbon renewable energy,
and
sustainable business model. Multi-Modal:
Walk, Bike,
Sustainable Multi-Nodal:
Ubiquitous
Bus, EV etc. Mobility Access
Community
Energy Use:
Development:
Renewable
Social Equity
Electricity,
and Culture
Sustainable Smart Grid
Manufacturing:
Cradle-To-CradleTM

7. Transformation to Sustainability Systems
Status Emergent Future
Quo
Sustainability Sustainability
Supply
Chain Circle™
Chain

8. Supply Chain
Raw Material Material Parts Product Sales
Manufacturer User
Suppliers Manufacturer Manufacturer Company

9. Sustainability Chain: Use & Service
Parts
Raw Material Material
Manufacturer Product
Suppliers Manufacturer
Manufacturer
Sales
Company
Reuse of
Products
Long Use
Secondary User
Service
Market

10. Sustainability Chain: Use and Recycle
Parts
Raw Material Material
Manufacturer Product
Suppliers Manufacturer
Manufacturer
Sales
Company
Open Loop Reuse of
User of Products
Materials recycling
Recycling materials Long Use
Secondary User
Service
Market
Materials
Processors Product
End-of-Life
Dismantlers
Shredding
Crushing of Products
Landfill
Shredder
Final Residue
Disposal

11. Sustainability Chain: Use and Recycle
Parts
Raw Material Material
Manufacturer Product
Suppliers Manufacturer
Manufacturer
Sales
Company
Closed Loop
Open Loop User of Materials
Materials recycling Reuse of
Recycling
Recycling materials Products
Long Use
Vehicle
Recovery Service User
Center
Materials
Processors Product
End-of-Life
Recycling
Shredding center
Crushing of Products
Landfill
Shredder
Final Residue
Disposal

12. Sustainability Circle™
Parts
Raw Material Material
Manufacturer Product
Suppliers Manufacturer
Manufacturer
Sales
Company
Closed Loop
User of Materials Reuse of Parts
recycling Reuse of
Recycling
materials Products
Long Use
Open Loop Parts Vehicle
Recovery Center Recovery Service User
Materials
Recycling Center
Materials
Processors Product
Sorting and End-of-Life
Disassembly Collection
Center
Recycling
Shredding center
Crushing of Products
Landfill
Shredder
Final Residue
Disposal

13. Sustainability Circle™
Parts
Raw Material Material
Manufacturer Product
Manufacturer

Suppliers Manufacturer
Generation of Raw
Materials
 Sales
Company

Closed Loop
• Chemical Recycling User of Materials Reuse of Parts
• Metallurgical Recycle recycling Reuse of
Recycling
materials Products
Long Use
Smelting Open Loop Parts Vehicle
Company Recovery Center Recovery Service User
Materials
  
Center

Recycling
Materials
Processors Product
Metals Sorting and End-of-Life
Disassembly Collection
Energy
Recovery Center
Thermal
Energy Collection
Company
Shredding
Recycling
center

Crushing of Products
Landfill
Final
Disposal
Shredder
Residue
 Original Equipment Manufacturer (OEM)

14. Sustainability Circle™
Parts
Raw Material Material
Manufacturer Product
Manufacturer

Suppliers Manufacturer
Generation of Raw
Materials
 Sales
Company

Closed Loop
• Chemical Recycling User of Materials Reuse of Parts
• Metallurgical Recycle recycling Reuse of
Recycling
materials Products
Long Use
Smelting Open Loop Parts Vehicle
Company Recovery Center Recovery Service User
Materials
  
Center

Recycling
Materials
Processors Product

Metals Sorting and End-of-Life
Disassembly Collection
Energy
Recovery Center
Thermal
Energy Collection
Shredding
Recycling
center

Company

Crushing of Products

Landfill
Final
Disposal
Shredder
Residue  3rd Party Recycler
 Original Equipment Manufacturer (OEM)

15. Automobile Manufacturing
Current Manufacturing Model
Long production lines dedicated to
single vehicle families
Expensive to build
Expensive to operate
Inflexible
Slow to change over to new
models

16. Automobile Manufacturing – New Paradigm
New Manufacturing Model
Short / modular flow lines
Lower capital investment
Simplified operation
Flexible, mixed-model production
Rapid product cycle, development
& introduction (new models) New
Rapid ramp-up capacity OEM
& capability with modular line
Assemble-to-order –
enables mass-customization
“Distributed manufacturing model”
Economies of scale to compete
globally with a localized footprint

17. Local Supply Networks
New
OEM

18. For Questions or More Information:
john.a.thornton@gmail.com
Phone: 503-806-1760
John Thornton © 2008